If the tax cost of this proposed project is $300 per person, a majority vote will:
a. defeat this project and resources will be underallocated to it.
b. pass this project and resources will be allocated efficiently.
c. pass this project and resources will be overallocated to it.
d. defeat this project and resources will be overallocated to it.
Answer: b. pass this project and resources will be allocated efficiently.
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Which of the following is least accurate in characterizing changes in retailing in the second half of the 19th century?
a. Large growth in the number of department stores b. Large growth in the number of chain stores c. Large growth in the number of "general stores" d. Large growth in the number of mail-order houses
Explain whether or not the ability-to-pay principle of tax equity is consistent with the benefits received principle of taxation
Suppose a farmer in Nebraska incurs $8,700 in crop damage from sparks that are created when a local railroad company sends trains along tracks bordering the farm. This damage can be best described as a:
a. negative externality. b. positive externality. c. transaction cost. d. social benefit.
Sierra likes chocolate-covered deviled eggs. After eating 10 chocolate-covered deviled eggs, she switches to strawberry ice cream covered in sauerkraut. We can conclude that
A. the chocolate-covered deviled eggs now have a negative marginal utility. B. Sierra is minimizing her utility. C. the chocolate-covered deviled eggs made Sierra sick. D. at this point, the chocolate-covered deviled eggs have a lower marginal utility per dollar spent than that of strawberry ice cream covered in sauerkraut.